What conditions trigger the 'Notification of Possible Indemnity Events' clause in the Circle K franchise agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.5 Notification of Possible Indemnity Events. Franchisee will notify Franchisor of any event that is or may be subject to indemnity as provided herein, and which has resulted or may result in personal injury, death, disease, or destruction of property, by telephone within twentyfour (24) hours after such event and in writing within three (3) days after such event.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the franchisee is required to notify Circle K of any event that is or may be subject to indemnity. This notification is triggered when an event has occurred or may occur that could lead to personal injury, death, disease, or destruction of property.
The notification process involves two steps. First, the franchisee must make a telephone call to Circle K within 24 hours of the event. Second, the franchisee must provide a written notice to Circle K within three days of the event. This dual notification system ensures that Circle K is promptly informed of any potential liabilities.
This clause is important because it allows Circle K to take timely action to mitigate any potential damages or legal issues arising from the event. By requiring prompt notification, Circle K can investigate the incident, assess the potential liability, and take steps to protect its interests. The franchisee's failure to provide timely notification could potentially result in the franchisee being held liable for any damages or losses incurred by Circle K as a result of the delay.